NYC congestion tolls face renewed federal court challenge

On the Dash:

• Manhattan congestion tolls have reduced traffic volumes and improved average vehicle speeds, benefiting commute times and fleet operations.
• The program has generated significant revenue to support transit modernization, including public transportation critical to urban mobility.
• Ongoing legal and political challenges create uncertainty for automotive and logistics planning in NYC, but economic activity in the toll zone has remained stable.

The legal dispute over New York City’s congestion pricing plan returns to federal court Wednesday as U.S. District Judge Lewis Liman hears arguments in a lawsuit seeking to prevent the Trump administration from revoking approval for tolls drivers have been paying since January 2025.

The Metropolitan Transportation Authority (MTA) sued the federal government after Transportation Secretary Sean Duffy rescinded prior approval for the program, which charges about $9 for most vehicles entering Manhattan south of 60th Street during peak hours. Both the MTA and the U.S. Department of Transportation are requesting the judge to rule in their favor without holding a trial.

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The toll program, the first of its kind in the United States, generated roughly $562 million in 2025 and has helped reduce traffic congestion and emissions in Manhattan. Vehicle entries into the tolled zone fell 11% compared with historical averages, while average morning speeds through the Holland Tunnel increased 51% to 16.2 miles per hour. Additionally, a Cornell University study found pollution in parts of Manhattan dropped 22% in the first six months of the program.

Governor Kathy Hochul and New York City Mayor Zohran Mamdani have publicly endorsed congestion pricing, celebrating its one-year anniversary earlier this month. Economic activity in the tolled area has continued to increase, with foot traffic rising by 3.1%, which outpaces the overall growth of 1.5% for all of Manhattan.

Federal opposition has cited legal concerns and potential effects on business activity, with President Donald Trump calling the toll a “disaster for New York.” Duffy has also linked the program to rising subway crime, using it as justification for withholding federal transportation funds.

Judge Liman previously ruled that the federal government could not block funding or new MTA projects while the case proceeds. His decision this week will determine whether the Trump administration can halt the toll or if the program will continue to operate as planned.